Harris, the short answer to your question about how people can get away with registering those other names you mentioned is that they are cybersquatting as well. People break rules and regulations all the time. Insider stock trading, drug deals, whatever. Some people feel confident that they know how to break rules and skirt by without getting into serious trouble. Many of them find themselves later getting into real trouble (and for some of the other examples I mentioned, like insider trading, going to jail -- see Martha Stewart).
If you want to raise a little money on the side, I honestly don't recommend trying to sell domain names. To be successful at it takes a lot of time and knowledge. Newbies come through these doors (and similar sites) thinking they'll make money doing this, only to leave frustrated, with a bunch of names nobody wants to buy off them and poorer than they started. The successful ones are the few who spend a lot of time figuring out the ins and outs.
The field is full of dashed dreams and people for whatever reason who like to advertise it as a way to make easy money. Like someone going by the handle namepopper was around here years back trying to sell off mostly anemic names and getting interviewed by websites about how "successful" he supposedly was, and then it turns out he simply didn't renew the hundreds of mostly worthless names he had (although he had a few OK ones here and there he sold for small amounts, apparently not nearly enough to make up for the registration fees on the others), disappeared off the face of the planet, and then later when people tried to track him down discovered that nobody by that name or description existed, and people decided he was probably the then owner of the site under an alias trying to hype the site and then no longer needed when the site was sold.
There are a lot, LOT better ways for someone just starting out to make money on the side than trying to work a field full of people with years of experience and many of them willing to lie and scam to get what they want. But if you don't want to give it a go, the first best lesson you should know is to definitely avoid things that can end up putting you into court really easily, like violating other people's trademarks.
And, Seeker, politicians are most certainly NOT unprotected by cybersquatting rules. "You read it somewhere"... great. Probably from someone trying to sell you a domain name cybersquatting on a politician.